AT A GLANCE

• To date, it is apparent that there is still very lax oversight on the LNG and overall gas infrastructure development in the country – and that gap peddles ‘monopolistic tendency’ of some players in what could have been intended as a competitive marketplace for gas.
• The approach of the Philippines on regulation as well as gas market development has also been standing on a very antiquated ledge – a system that is already being wiped off the map by cutting edge solutions and developments prevailing in more mature markets, primarily on the incursion of artificial intelligence (AI) and machine learning advancements across the LNG development value chain.

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To guarantee that all players in the flourishing liquefied natural gas (LNG) industry of the country will all play by the same rules, the Department of Energy (DOE) has inked a ‘research study pact’ with the University of the Philippines (UP) on drawing up regulatory toolboxes and standards that shall be enforced in the sector.

The memorandum of agreement (MOA) that was cemented with the University of the Philippines Statistical Center Research Foundation, Inc. (UPSCRFI) covers the third phase of the Gas Policy Development Project (GPDP-3) spearheaded by the DOE. Energy Secretary Raphael P.M. Lotilla and UPSCRFI Executive Director Dr. Joseph Ryan Lansangan had been the signatories in the deal.

“This significant collaboration underscores the government’s thrust of establishing a regulatory framework, building the capacity of regulators, and providing evidence-based data and technical inputs for policymaking and sectoral planning related to downstream natural gas industry,” the DOE said.

To date, it is apparent that there is still very lax oversight on the LNG and overall gas infrastructure development in the country – and that gap peddles ‘monopolistic tendency’ of some players in what could have been intended as a competitive marketplace for gas.

The approach of the Philippines on regulation as well as gas market development has also been standing on a very antiquated ledge – a system that is already being wiped off the map by cutting edge solutions and developments prevailing in more mature markets, primarily on the incursion of artificial intelligence (AI) and machine learning advancements across the LNG development value chain.

Through the years, drawing up ‘evidence-based’ data has always been the ‘weak link’ not just of the Philippine policymakers and regulators, but even for many of the industry stakeholders – and in the ‘guessing game proclivity’ of market players, it’s the consumers who would often suffer not just from inferior services, but also high energy tariffs.

In the newly inked research pact with UP, it was emphasized that the study is anchored on a technical assistance extended by foreign development partners to the DOE – and primarily intended on crafting “the codes of standard, rules and regulations governing the country’s downstream natural gas industry.” Technical assistance for the study has been extended by  Economic Research Institute for ASEAN and East Asia (ERIA) and the government of Japan.

Lotilla conveyed that “as we enter the third phase, I am optimistic that we will achieve more sustained programs. The DOE stands ready to provide all necessary support to ensure its successful implementation. No efforts laid in previous phases will go to waste.”

Specifically, the regulatory framework shall underpin “the design, construction, operation, and maintenance of facilities for LNG storage and regasification terminal, transmission and distribution system and third party-access.”

The DOE noted the research will delve with “LNG market development and technology and strengthening the capacity of agency regulators.”

On third party access, in particular, there is no existing regulation yet on the throughput fee if an industry player with LNG import facility will be delivering gas to customers outside of its own requirements.

To guarantee that all players in the flourishing liquefied natural gas (LNG) industry of the country will all play by the same rules, the Department of Energy (DOE) has inked a ‘research study pact’ with the University of the Philippines (UP) on drawing up regulatory toolboxes and standards that shall be enforced in the sector.

The memorandum of agreement (MOA) that was cemented with the University of the Philippines Statistical Center Research Foundation, Inc. (UPSCRFI) covers the third phase of the Gas Policy Development Project (GPDP-3) spearheaded by the DOE. Energy Secretary Raphael P.M. Lotilla and UPSCRFI Executive Director Dr. Joseph Ryan Lansangan had been the signatories in the deal.

“This significant collaboration underscores the government’s thrust of establishing a regulatory framework, building the capacity of regulators, and providing evidence-based data and technical inputs for policymaking and sectoral planning related to downstream natural gas industry,” the DOE said.

To date, it is apparent that there is still very lax oversight on the LNG and overall gas infrastructure development in the country – and that gap peddles ‘monopolistic tendency’ of some players in what could have been intended as a competitive marketplace for gas.

The approach of the Philippines on regulation as well as gas market development has also been standing on a very antiquated ledge – a system that is already being wiped off the map by cutting edge solutions and developments prevailing in more mature markets, primarily on the incursion of artificial intelligence (AI) and machine learning advancements across the LNG development value chain.

Through the years, drawing up ‘evidence-based’ data has always been the ‘weak link’ not just of the Philippine policymakers and regulators, but even for many of the industry stakeholders – and in the ‘guessing game proclivity’ of market players, it’s the consumers who would often suffer not just from inferior services, but also high energy tariffs.

In the newly inked research pact with UP, it was emphasized that the study is anchored on a technical assistance extended by foreign development partners to the DOE – and primarily intended on crafting “the codes of standard, rules and regulations governing the country’s downstream natural gas industry.” Technical assistance for the study has been extended by  Economic Research Institute for ASEAN and East Asia (ERIA) and the government of Japan.

Lotilla conveyed that “as we enter the third phase, I am optimistic that we will achieve more sustained programs. The DOE stands ready to provide all necessary support to ensure its successful implementation. No efforts laid in previous phases will go to waste.”

Specifically, the regulatory framework shall underpin “the design, construction, operation, and maintenance of facilities for LNG storage and regasification terminal, transmission and distribution system and third party-access.”

The DOE noted the research will delve with “LNG market development and technology and strengthening the capacity of agency regulators.”

On third party access, in particular, there is no existing regulation yet on the throughput fee if an industry player with LNG import facility will be delivering gas to customers outside of its own requirements.